Is there a luxury tax on power tools?
August 13, 2003
Date: Tue, 29 Jul 2003
Subject: power tool tax
My family was going to start their own business until they received a phone call from a "tax man" who wanted to know all the power tools they had because they would have to pay a "luxury tax." Does this sound right? I can't find any information on luxury tax for power tools. Please help. I really appreciate it.
Date: Fri, 01 Aug 2003
The federal luxury tax has expired and never did apply to power tools. It could be someone is getting sloppy with their terminology or there is a state (not California) luxury tax that applies. The tax that usually applies each year to tools used in a trade or business is the personal property tax. For details, consult with a local tax professional or call your county assessor's office.
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links